The Impact Of Culture On An Organization Essay

The Impact Of Culture On An Organization Essay

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Culture is defined as a complex set of values, beliefs, assumptions, and symbols that define how members of an organisation act (Barney, 1986). Although culture can be both an asset and a liability in regards to the success of an organisation, it is the nature of an organisations core values, attributes, communication skills and how an organisations culture is perceived by its stakeholders that define the influence culture has on an organisation. This will be illustrated through how strong and weak organisational cultures can act as both an asset and a liability to an organisation.

Culture has an immense impact on an organisation. Culture not only defines a business’ employees, customers, suppliers, and competitors, it also outlines how a firm will interact with its stakeholders. An organisations culture can be a business’ greatest strength in realising its objectives (Rose, 2005). According to Jay B. Barney (1986), for an organisational culture to grant a firm a competitive advantage, it must enable a business to behave in a manner that adds financial value to the business, be unique to a business, and be imperfectly imitable. A firm’s culture should encourage effective implementation of behaviours that are aligned with a firm’s objectives. If an organisations culture fails to do this and encourages unethical business activity that does not integrate positive values that have the best interest of an organisation in mind, then a firm’s culture will be a liability. In some circumstances, if an organisations culture is a liability, it may be necessary to completely redefine a whole organisation to correct it. Jossy Mathew & Emmanuel Ogonna (2009), descried culture like a jigsaw puzzle. When it fits together it is beneficial and eff...


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... has an immense impact on an organisation and it is the underlying core values, attributes, communication skills, and how a culture is perceived by its members that define the influence culture has on an organisation. Regardless of if an organisation has either a strong or weak business culture, culture can act as both an asset and a liability. Although strong business cultures can increase productivity, communication and efficiency during the decision making process, it can act as a liability if management styles are dysfunctional, the culture compresses innovation, or it is bound by outdated traditions. Weak business cultures on the other hand, can act as an asset for improving innovation through individualism, however can be a liability if there is a lack of communication or if an organisations lack of tradition allows for questionable business practises to arise.

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